AN ACT
Relating to tax deferrals for a new thoroughbred race track facility; adding a
new chapter to Title 82 RCW; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. Unless
the context clearly requires otherwise, the definitions in this section apply
throughout this chapter.
(1)
"Applicant" means a person applying for a tax deferral under this
chapter.
(2)
"Person" has the meaning given in RCW 82.04.030.
(3)
"Department" means the department of revenue.
(4)
"Investment project" means construction of buildings, site
preparation, and the acquisition of related machinery and equipment when the
buildings, machinery, and equipment are to be used in the operation of a new
thoroughbred race track.
(5)
"New thoroughbred race track" means a site for thoroughbred horse
racing located west of the Cascade mountains on which construction is commenced
after the effective date of this act and prior to July 1, 1998.
(6)
"Buildings" means only those new structures such as ticket offices,
concession areas, grandstands, stables, and other structures that are an
essential or an integral part of a thoroughbred race track. If a building is
used partly for use as an essential or integral part of a thoroughbred race
track and partly for other purposes, the applicable tax deferral shall be
determined by apportionment of the costs of construction under rules adopted by
the department.
(7)
"Machinery and equipment" means all fixtures, equipment, and support
facilities that are an integral and necessary part of a thoroughbred race
track.
(8)
"Recipient" means a person receiving a tax deferral under this
chapter.
(9)
"Certificate holder" means an applicant to whom a tax deferral
certificate has been issued.
(10)
"Operationally complete" means constructed or improved to the point
of being functionally useable for thoroughbred horse racing.
(11)
"Initiation of construction" means that date upon which on-site
construction commences.
NEW
SECTION. Sec. 2.
Application for deferral of taxes under this chapter shall be made before
initiation of construction of buildings, site preparation, or acquisition of
machinery and equipment. The application shall be made to the department in a
form and manner prescribed by the department. The application shall contain
information regarding the location of the investment project, estimated or
actual costs, time schedules for completion and operation, and other
information required by the department. The department shall rule on the
application within sixty days.
NEW
SECTION. Sec. 3. (1) The
department shall issue a sales and use tax deferral certificate for state and
local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on
each investment project. The use of the certificate shall be governed by rules
established by the department.
(2)
This section shall expire July 1, 1998.
NEW
SECTION. Sec. 4. (1) The
recipient shall begin paying the deferred taxes in the tenth year after the
date certified by the department as the date on which the investment project is
operationally complete. The first payment is due on December 31st of the tenth
calendar year after such certified date, with subsequent annual payments due on
December 31st of the following four years with amounts of payment scheduled as
follows:
Repayment
Year % of Deferred Tax Repaid
1 20%
2 20%
3 20%
4 20%
5 20%
(2)
The department may authorize an accelerated repayment schedule upon request of
the recipient.
(3)
Interest shall not be charged on any taxes deferred under this chapter for the
period of deferral, although all other penalties and interest applicable to
delinquent excise taxes may be assessed and imposed for delinquent payments
under this chapter. The debt for deferred taxes is not extinguished by
insolvency or other failure of the recipient.
NEW
SECTION. Sec. 5. Chapter
82.32 RCW applies to the administration of this chapter.
NEW
SECTION. Sec. 6.
Applications and any other information received by the department under this
chapter is not confidential and is subject to disclosure.
NEW
SECTION. Sec. 7. If any
provision of this act or its application to any person or circumstance is held
invalid, the remainder of the act or the application of the provision to other
persons or circumstances is not affected.
NEW
SECTION. Sec. 8. Sections
1 through 7 of this act shall constitute a new chapter in Title 82 RCW.
NEW SECTION. Sec. 9. This act
is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and shall take effect immediately.
